Beginning in 2009, you can get an income tax credit of up to a lifetime total cap of $1,500 for installing efficient new windows, insulation, doors, roofs, and heating and cooling equipment in your home. However, efficiency criteria will vary dependant on when these items are "placed in service" (installed).
Who gets it? Individuals who install specific energy-efficient home improvements.
What energy-efficient home improvements are eligible? The overall $1,500 cap can be reached in several ways with the purchase and installation of energy-efficient products that meet certain efficiency criteria.
Exterior windows: Includes skylights and storm windows.
Insulation, exterior doors, or roofs: Includes seals to limit air infiltration, such as caulk, weather stripping, and foam sealants, as well as storm doors.
Central air conditioner, heat pump, furnace, boiler, water heater, or bio gas (e.g. corn) stove: Starting in 2009, geothermal heat pumps are instead eligible for a separate tax credit.
5. Geothermal Heat Pumps, Solar Energy, Wind Energy and Fuel Cells.
There are also tax credits for geothermal heat pumps solar photovoltaic cells, solar water heaters, and fuel cells, also modified starting in 2009.
Geothermal (or ground-source) heat pumps placed in service starting in 2009 are now eligible for a tax credit for 30 percent of the cost, with no maximum. These credits are effective through December 21, 2016. In order to be eligible for the tax credit, geothermal heat pumps must meet Energy Star criteria (specified in Section 6.4 below). In 2006-2007 geothermal heat pumps were eligible for a smaller credit as part of the home improvements credit described above.
Solar hot water heating and photovoltaic power systems placed in service by December 31, 2016 are also eligible for the 30 percent credit, as are small wind systems. More information on renewable tax credits is available from the Energy Star website.
Though available, residential fuel cell systems are rare in application.Some systems may be eligible for credits, subject to certain criteria.
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This is great information Jeff. I have heard many conflicting things about the tax credits. Thank you for setting me straight.
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